BofA: Buy These 37 Stocks

Income & Prosperity Investing Research
by 

According to Savita Subramanian…

It’s a great time to buy value stocks.

She said in a new note this week that the valuation extremes could increase volatility in 2024, creating “abundant mean reversion alpha” opportunity.

Or in simpler terms…

Very cheap stocks could play catch-up and pay investors who buy early.

She selected 34 buy-rated stocks that are also cheaper than at least 75% of the names in their sectors – based on 3 valuation metrics:

  1. The 12-month forward price-to-earnings ratio
  2. The 12-month trailing price-to-earnings ratio
  3. The enterprise value-to-earnings before interest, tax, depreciation, and amortization

Here’s her top 34 picks:

  1. APA Corporation (APA)
  2. Bunge Global (BG)
  3. Builders FirstSource (BLDR)
  4. BorgWarner (BWA)
  5. Caterpillar (CAT)
  6. CF Industries Holdings (CF)
  7. Cigna Group (CI)
  8. CVS Health (CVS)
  9. Delta Air Lines (DAL)
  10. Quest Diagnostics (DGX)
  11. D.R. Horton (DHI)
  12. Everest Group (EG)
  13. Elevance Health (ELV)
  14. Entergy (ETR)
  15. Ford Motor Company (F)
  16. FedEx (FDX)
  17. Gen Digital (GEN)
  18. Gilead Sciences (GILD)
  19. General Motors (GM)
  20. HP (HPQ)
  21. Host Hotels & Resorts (HST)
  22. Jabil (JBL)
  23. Kraft Heinz (KHC)
  24. Kimco Realty (KIM)
  25. Mosaic (MOS)
  26. NXP Semiconductors (NXPI)
  27. ON Semiconductor (ON)
  28. QUALCOMM (QCOM)
  29. Simon Property Group (SPG)
  30. AT&T (T)
  31. Tapestry (TPR)
  32. United Airlines (UAL)
  33. Universal Health Services (UHS)
  34. United Rentals (URI)

Now, these could be great picks for 2024.

But nobody has a crystal ball and it’s difficult to predict what will happen in 2024.

Yours in Wealth,

Ian Wyatt

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